Stock Of The Week: YTL Land & Development

YTL Land & Development Bhd shares rebounded from the most recent lows of 87 sen on May 3 to close at RM1.08, up seven sen amid continuous bargain-hunting interest.

Based on the daily chart, the recent climb has lifted prices above the 19-month-old bearish descending line. The positive breakout, supported by growing trading volumes, suggests that this stock has turned the corner and it is now on the road to recovery.

The immediate upside target is to challenge the relatively strong resistance of RM1.15. A breach of this hurdle would propel the shares up to the RM1.28 level. Greater resistance is resting at the RM1.32 barrier, of which a decisive major breakout would see the bulls become more aggressive.

Elsewhere, the oscillator per cent K had tripped below the oscillator per cent D of the daily slow-stochastic momentum index at the top yesterday. However, the short-term sell signal could not be confirmed yet, simply because the two oscillators remain flirting above the 80% bullish line.

In stark contrast, the 14-day relative strength index continued to improve from the neutral territory on Monday to end the week at the 80-point level. Although slightly overbought, it showed no signs of abating yesterday.

Meanwhile, the daily moving average convergence/divergence histogram retained the posture sharply above the daily signal line to stay bullish. It had issued a buy on Tuesday.

Technically, indicators are pretty encouraging, implying prices are likely to firm on bullish extended-mode in the short term.

Current support is envisaged at the 98-sen line and important floor is pegged at the 200-day simple moving average of 94.5 sen.

The comments above do not represent a recommendation to buy or sell.

Source: K.M.Lee biz.thestar.com.my